In a significant development in the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), the two parties have reached an agreement to suspend the $125 million judgment against Ripple. This move suggests that Ripple may appeal the ruling, potentially extending the legal saga between the two entities.
Background of the Dispute
The conflict between Ripple Labs and the SEC revolves around the digital currency XRP. The SEC accused Ripple of selling XRP as unregistered securities, a charge Ripple has consistently denied. In a previous ruling, Judge Analisa Torres ruled that the sales of XRP in exchanges did not constitute securities. However, the recent judgment ordered Ripple to pay the $125 million fine.
Agreement to Suspend Payment
In a surprising turn of events, Ripple Labs’ legal team requested to suspend the payment of the $125 million fine, which was handed down on August 7, 2023. The SEC has agreed to delay the payment until after September 6. To ensure that the funds remain secure, Ripple proposed to deposit 111% (approximately $139 million) of the judgment amount into a bank account until the end of the appeal period or until a final decision is made.
This move by Ripple suggests that the company may be preparing to appeal the judgment. Ripple CEO Brad Garlinghouse described the ruling as a victory and expressed the company’s intention to respect the fine.
Implications of the Agreement
The agreement between Ripple and the SEC to suspend the payment of the fine has significant implications for the ongoing legal battle. If Ripple decides to appeal, it means that the dispute between the two parties is far from over. This also raises the possibility that the SEC may decide to appeal the previous ruling that XRP is not a security.
The suspension of the fine payment also highlights the uncertainty surrounding the future of XRP and its regulatory status. The legal battle has had a significant impact on the XRP community, with many investors and supporters hoping for a resolution that would clear the path for XRP to thrive in the market.
XRP Price and Market Reaction
In the wake of the agreement, the price of XRP has remained relatively stable, currently trading at $0.56. Over the past 30 days, XRP has seen a slight increase of approximately 0.15%. This suggests that the market is still cautious and waiting for further developments in the legal battle.
Conclusion
The agreement between Ripple and the SEC to suspend the $125 million judgment is a significant development in the ongoing legal battle. It suggests that Ripple may appeal the ruling, potentially extending the legal saga between the two entities. As the case unfolds, the future of XRP and its regulatory status remains uncertain, with investors and supporters eagerly awaiting a resolution.
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